Curt owns the following assets which he gives to his daughter Carla. No gift tax results. Fair Market
Both items have been held by Curt as an investment for more than one year. If Carla immediately sells these assets for $1 million ($400,000 + $600,000), she recognizes:

Question

Curt owns the following assets which he gives to his daughter Carla. No gift tax results. Fair Market
 Both items have been held by Curt as an investment for more than one year. If Carla immediately sells these assets for $1 million ($400,000 + $600,000), she recognizes:

Quizplus · Accepted Answer

Carla would recognize a long-term capital gain of $200,000 ($1 million selling price - $800,000 basis) and no loss. Both assets have been held by Curt for more than one year, so they qualify as long-term capital assets. When Carla sells them for $1 million, she will recognize a gain of $200,000 ($1 million selling price - $800,000 basis), which is a long-term capital gain since the assets were held for more than one year. There is no loss to recognize because the selling price exceeds the basis of the assets.

Curt Owns the Following Assets Which He Gives to His